Hi, I'm planning to invest in NPS but I'm not too sure about what is Tier 1 and 2. Though I tried to read sone informations on that nothing helped me. Please brief me on this. I'm 28 years now working in a private company. I do also have EPF. Is there any website or any other link I can know completely know about NPS and CAMS document. Also how much is the minimum amount to start of with and how much are the interests.Please help.
1 Answers
Tier 1 is compulsory for NPS account and investment in this is eligible for income tax deduction. Money cannot be withdrawn from this before retirement. Tier 2 account is optional and can only be opened if you have Tier 1 account. Money can be withdrawn from it when required. No tax exemption is available on tier 2 account deposits.
You can open your account even with Rs 500. Minimum one deposit is required per year and minimum 6000 Rs has to be invested per year.
There is no fixed rate of interest. You can choose to invest in Equity, Debt and Govt bonds.
You can read in details about NPS on following links:
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